Low-Carbon Fuel Rules

California is about to add to its record of leadership on clean energy policy with its innovative Low-Carbon Fuel Standard that goes into effect January 1. We highlight the program and its likely impact on alternative energy sources for transportation today at MIT TechReview.com in “Low-Carbon Fuel Rules”. As the tagline states, “California is about to implement a standard to boost cleaner fuels and punish the rest.”

One point is that California’s LCFS may not deliver the knock-out blow to Canada’s carbon-intensive tarsands that many climate change activists continue to hope for. Gasoline and diesel fuel refined from the tarsands’ asphaltine bitumen may escape being banned if its producers emphasize energy efficiency according to UC Davis’ Daniel Sperling.

Another observation I’ll be following up is the cohesiveness of the biotech industry. In the face of regulatory innovations such as the LCFS that would disadvantage corn ethanol production and advantage cash-hungry innovators developing more carbon-smart advanced biofuels, the latter seem to be quietly defending the status quo.

Then there’s the California standard’s nuanced approach to diesel, which is not addressed in the TechReview piece but which Carbon-Nation spotlighted last summer. The short take is that the LCFS mandates separate and equal reductions in the carbon footprint of the gasoline and diesel fuels sold in California. That approach eliminates the possibility that diesel use will be incentivized as an alternative to gasoline. The reason? California regulators believe that even today’s ‘clean diesels’ release more than their share of soot, which is a major cause of premature mortality and also a potential contributor to climate change in its own right.